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Netflix's cheaper ad tier could arrive earlier than expected

2022-09-02 15:59 by
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Although Netflix announced to the world in July that it is launching its ad-supported version in early 2023, the streamer could be changing its plans. As reported by The Wall Street Journal on Wednesday, Netflix execs told ad buyers the launch date would now be November 1, 2022.

A decline in subscribers doesn't seem to be the main driver for rushing out an ad-supported streaming tier. The Disney+ tier with advertising (called Disney+ Basic) is set to launch on Dec. 8, and Netflix apparently wants to beat it to market, according to industry sources. When Variety asked Netflix about this, a spokesperson said, "We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made."

The Netflix plan will go live in multiple countries, including the US, Canada, UK, France, and Germany. Initially, for the first phase of the ad tier's rollout, Netflix will only serve ads based on the viewer's country, and not by age, gender, viewing behavior, or time of the day. Netflix plans to sell around four minutes of airtime an hour in both pre-roll and midroll.

While we don't know how much Netflix's ad tier will be, the rumored cost is anywhere from $7 to $9 per month. Rival Disney confirmed in its recent earnings call that its flagship streaming service Disney+ would charge subscribers $7.99 per month.

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